South Korean electronics giant Samsung is reportedly evaluating the possibility of relocating a portion of its smartphone and electronics manufacturing operations from Vietnam to India. The strategic move is aimed at mitigating risks arising from potential US tariffs on Vietnamese exports, according to a report by Moneycontrol.
Sources familiar with the development revealed that Samsung has already initiated early-stage discussions with Indian contract manufacturing firms such as Bhagwati (Micromax) and Dixon Technologies. These talks are focused on assessing the feasibility of shifting parts of its production lines to India.
“Yes, talks have begun with Indian EMS players, including their existing partners. Not just Samsung, all other companies with a base in Vietnam are exploring possibilities to shift some production to India,” a source privy to the matter told Moneycontrol on the condition of anonymity. “Samsung and partners are discussing production adjustments in favour of India.”
Vietnam currently functions as Samsung’s largest global manufacturing base. However, with rising trade tensions and the looming threat of tariffs—especially from the US—the electronics major is looking at India as a strategic alternative to serve international markets more smoothly and cost-effectively.
India has been aggressively promoting itself as a global manufacturing hub under its Production-Linked Incentive (PLI) scheme and other government-backed incentives for electronics production. If Samsung proceeds with its plans, it could mark a significant boost for India’s electronics manufacturing ecosystem and enhance the country’s role in global supply chains.